SYDNEY HARBOUR FORESHORE AUTHORITY AnnuaL REPORT 2010–11 Letter to Our vision the Minister To make unique places in Sydney that the world talks about Our purpose The Hon Brad Hazzard MP Minister for Planning and Infrastructure To create and sustain living places Level 33, Governor Macquarie Tower and great experiences 1 Farrer Place Sydney NSW 2000 The Authority does this by: > Managing places profitably and socially to deliver Dear Minister excellence in our role as manager for Sydney’s I have pleasure in submitting the Sydney significant waterfront and other precincts, balancing Harbour Foreshore Authority Annual visitor, community and commercial expectations. Report for the year ended 30 June 2011. As custodian, to ensure the preservation and interpretation of our natural and cultural heritage. The report has been prepared in accordance with the Annual Reports > Promoting places effectively to capitalise on the (Statutory Bodies) Act 1984, the Public economic and cultural worth of our places, as core Finance and Audit Act 1983 and the attractions for both visitors and Sydneysiders. regulations under those Acts. > Developing places responsibly to demonstrate leadership in creating quality environments that Yours sincerely are enriching, diverse, accessible and sustainable. To add value by redeveloping surplus government land through a highly-skilled organisation. > Managing the organisation efficiently to meet customer and stakeholder needs and expectations. Sam Haddad Director General Department of Planning and Infrastructure Contents ] 1 3 5 02 > At a glance 22 > Stakeholders and customers 38 > Corporate governance 03 > Achievements It is our responsibility to provide The Authority has established 04 > Our places outstanding services and support to governance structures and systems our key stakeholders—our tenants, to ensure it meets its compliance and 06 Our performance > the NSW Minister for Planning and risk management obligations and 08 > Director General’s message Infrastructure, the NSW Government, sustainability objectives. 10 > General Manager’s message our business partners and our employees—and deliver outstanding 12 > Our structure and services and events to our key executive team customers—the public, as well as effectively and efficiently delivering 6 special state projects. 42 > Financial performance 24 > Conventions, exhibitions 2 and entertainment By managing the business commercially, including maximising 24 > Community services return from assets and operations, 14 > Business effectiveness 25 > Indigenous initiatives the Authority can continue to achieve The first of the Authority’s four key its important work. business outcomes, this section 26 > Education focuses on managing our business 27 > Building stakeholder relationships 44 > Sydney Harbour Foreshore efficiently and effectively. We do this Authority 28 > Outstanding events by continually improving our 82 > Sydney Harbour Foreshore processes, enhancing place 31 > Supporting the community Authority Casual Staff Division management efficiency and integrating sustainability into 92 > Luna Park Reserve Trust everything we do. 16 > Place management efficiency 4 17 > Creating sustainable precincts 7 18 > Leadership in sustainability 32 > Organisational health 19 > Managing heritage and To sustain business growth and 112 > Appendix public places innovation the Authority strives to 21 > A year of accolades attract, retain and grow highly 119 > Index competent and motivated employees. 121 > Contact us Employees are engaged in the future of the organisation through effective leadership and communication. 34 > Employee development and engagement 34 > Workplace initiatives 35 > Human resources Sydney Harbour Foreshore Authority Annual Report 2010–11 1 1 At a glance Sydney Harbour Foreshore Authority owns and manages some of the State’s most significant assets, including Sydney’s heritage and cultural precincts at The Rocks and Darling Harbour. With more than $1.2 billion in assets and around 215 employees, the Authority manages significant commercial and retail leases, provides security, cleaning, building maintenance and other asset management services, and cares for the public domain and more than 140 heritage items. The Authority also operates marketing and visitor services and hosts significant events in The Rocks and Darling Harbour each year. Between them, the precincts attract around 39 million* visitors annually. The Authority also owns State-significant sites at White Bay Power Station, Rozelle railway yards and Ballast Point and manages other major waterfront assets around Sydney Harbour on behalf of other agencies. Sydney Harbour Foreshore Authority was formed in 1999 under the Sydney Harbour Foreshore Authority Act 1998 to consolidate the work and functions of City West Development Corporation, Darling Harbour Authority and Sydney Cove Authority. In April 2011 the Authority became part of the NSW Department of Planning and Infrastructure. On 29 August 2011, the Minister for Planning and Infrastructure announced the appointment of a new Board for the Authority, chaired by Dick Persson AM. The members of the board are Peter Lowry OAM, Carolyn Fletcher, Owen Evans and Sam Haddad. *The number of people movements recorded. See page 31 for details on how figures are calculated. 2 Sydney Harbour Foreshore Authority Annual Report 2010–11 The Authority aims to provide precincts that reflect the needs of the people of Sydney ] Achievements 2010–11 > $46.4 million Generated $46.4 million in lease revenue in The Rocks, Darling Harbour and surrounds > Conventions and exhibitions Secured the future of Sydney’s convention, entertainment and exhibition facilities with the announcement of the new Sydney International Convention, Exhibition and Entertainment Precinct project > Community consultation Completed the second stage of community consultation for the Bays Precinct > Conservation Completed a program to prepare Conservation Management Plans for all heritage-listed assets > $12.2 million Invested $12.2 million on managing and conserving heritage and public spaces > Record numbers Welcomed 110,771 people to The Rocks Discovery Museum—the highest visitation yet > 1.52 million Produced events in The Rocks and Darling Harbour attended by 1.52 million people* > 30 community events Supported more than 30 major public events and community festivals in The Rocks and Darling Harbour Sydney Harbour Foreshore Authority Annual Report 2010–11 3 N Our places W E S Sydney Harbour The Rocks and Circular Quay The Rocks is located at the northern Foreshore Authority is part of the Sydney CBD occupying the responsible for Sydney’s peninsula between Circular Quay and the Sydney Harbour Bridge. It is the most historically and place where the first European settlers culturally significant came ashore in 1788. waterfront locations. In The Rocks, the Authority owns and maintains 93 State heritage-listed buildings. It also manages 298 retail These responsibilities and commercial tenants including waterfront cafes, restaurants, bars include the care, and contemporary shopping, as well protection, management as 27 residential tenants and around and promotion of this 200 stallholders in The Rocks Markets. The Authority is committed to ensuring land and its important The Rocks is a vibrant place that offers buildings. a diversity of experiences for all our visitors while protecting and enhancing its heritage value. With a growing residential population and an increasing workforce, The Rocks is changing from a tourist destination to an intimate village with a new relevance to both locals and visitors. Darling Harbour Darling Harbour was created as a gift to the nation in celebration of Australia’s bicentenary. Since its opening in 1988, Darling Harbour has continued to be a place of celebration for the people of Sydney, as well as a hugely popular tourist destination. Rozelle At Darling Harbour, the Authority oversees the management of 139 tenancies comprising waterfront cafes, restaurants and bars, contemporary shopping, berths and many of Sydney’s top attractions. The Authority is committed to maintaining Darling Harbour as one of the world’s best waterfront leisure, entertainment and business destinations for Sydneysiders and visitors alike. Annandale The Authority also owns State- significant sites at White Bay Power Station, Rozelle railway yards and Ballast Point; is responsible for 21 tenancies at Pyrmont, Rozelle, Lilyfield and White Bay; and manages Luna Park Reserve Trust and Callan Park. Major owned or managed lands (boundaries are indicative only) 4 Sydney Harbour Foreshore Authority Annual Report 2010–11 Lavender Bay Luna Park Kirribilli Ballast Point Sydney Harbour Bridge Walsh Bay Barangaroo Circular The Quay Rocks Balmain White Bay CBD King Street Wharf Pyrmont Rozelle Bay Cockle Bay Blackwattle Bay Darling Harbour Ultimo Glebe Our performance 2010–11 The table below shows our results under our four key business outcomes: business effectiveness, stakeholders and customers, organisational health and financial performance. Key Performance Indicators Target Result Target Improvement Result Result Result Target 2010–11 2010–11 achieved on 2009–10 2009–10 2008–09 2007–08 2011–12 Business effectiveness – see page 14 Retail vacancy rate1 – proportion of < 5.4% 4.81% ✔ No 2.36% 1.55% 1.8% < 5.4% the Authority’s retail properties that are vacant as at 30 June 2011 (excluding ground leases from lettable area) Commercial vacancy rate1 – proportion of < 9.3% 15.08%2 – Yes 17.05%